If a Market Is Such That, at the Market Equilibrium

question 67

Multiple Choice

If a market is such that, at the market equilibrium quantity, the benefit of the last unit produced just equals its marginal cost

• A)it has earned a positive economic profit
• B)it has achieved productive efficiency
• C)it has achieved allocative efficiency
• D)it has achieved economies of scale
• E)there are further trades than can increase producer surplus

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Definitions:

Fixed Cost

A cost that does not change with an increase or decrease in the number of goods or services produced or sold.

Production Costs

Direct costs associated with the manufacturing of goods, including labor, materials, and overhead expenses.

Variable Manufacturing Costs

Expenses that vary directly with the level of production, such as raw materials and labor.

Book Value

The net value of a company's assets, calculated by subtracting its liabilities from its total assets.